WTF is the Shapella upgrade?
The Tally Newsletter, Issue 93
Welcome back to the Tally Newsletter, your weekly source for insights on DeFi and DAO governance. We're dedicated to keeping you in the loop on pivotal proposals, procedural transformations, newly implemented voting mechanisms, and evolving power structures within the Tally ecosystem. Plus, we'll curate a selection of must-read articles and must-listen podcasts each week to ensure you remain a well-informed citizen of web3.
I'm coolhorsegirl, a DeFi native thrilled to deliver the latest updates to you every week. With prior experience with Index Coop and a diverse range of DeFi projects, I have a keen interest in DAO governance and cutting-edge DeFi innovations focused on promoting decentralization to its fullest potential.
This week, we’re talking Shapella upgrade. Don’t you just love a portmaneteau? Well, this one one offers LOWER GAS FEES (LFG) and some huge unlocks (literally) for validators. I’ll break it down for ya so it’s not too confusing. We’ll also run through a few proposals, like Uniswap’s proposed Deployments Accountability Committee and the usual Nounish stuff (wen keyboard?). Let’s get into it.
🤿 Deep Dive: WTF is the Shapella upgrade?
The Merge is complete! Two network upgrades have happened simultaneously: the Shanghai upgrade + the Capella upgrade = “the Shapella upgrade.” The upgrade will mark Ethereum’s transition to proof-of-stake (PoS) complete and aims to improve the scalability of the network.
"If we don't fix scaling before the next bull run, we know people are going to be stuck paying $500 transactions.” - Vitalik Buterin
Enter: the Shapella upgrade…
Some context: Ok, so we know that the Ethereum network has two layers - the execution layer (a.k.a. Ethereum Virtual Machine or EVM) and the consensus layer (a.k.a. Beacon Chain). Shanghai deals with the execution layer and Capella deals with the consensus layer. The Shapella upgrade consists of 5 Ethereum Improvment Proposals (EIPs), with the most important change coming from one: EIP-4895: Beacon chain push withdrawals as operations.
Some more context: The Beacon Chain is secured by PoS. This means that it needs validators to maintain its integrity. For validators, it’s a pricey endeavor: 32 ETH to secure the Beacon chain. As a reward, validators earn interest on their ETH paid via gas fees on network transactions. But there’s a catch: Validators couldn’t unstake their 32 ETH until a later, undetermined date.
The big news: By EIP-4895, Validators can now unstake their ETH. By the Shapella upgrade, approximately $33 billion worth of staked ETH will be able to be withdrawn (and potentially sold or restaked).
What about the other EIPs? They’re focused on lowering gas fees during instances of extreme network congestion and heightened activity, not just for developers but also for the average user.
The Shapella upgrade is one of the most important events in crypto in 2023. While validators celebrate the liberation of their staked ETH, users like you and me may enjoy lower gas fees, improved security, and a more sustainable Ethereum network. I’m especially excited about those lower gas fees, though ;)
⌛️ On-chain Proposals
On-chain DAOs are decentralized autonomous organizations that operate entirely on the blockchain, using smart contracts and other blockchain-based technologies for its operations and decision-making processes. Tally believes that true DAOs operate on-chain.
Uniswap
Uniswap Deployments Accountability Committee
Summary: 14.33k UNI to create an Accountability Committee for Deployments to oversee the operational development of deployments of Uniswap V3 on other chains. 6 months, 5 already-proposed members.
Voting ends: April 20th
Gitcoin
[GCP-006] Infinite Garden Trading Card Game
Summary: A game by Gitcoin! 10.7K GTC to fund 69-150 cards including 5 proposed by the Gitcoin community and 20% of primary sale profits to the Matching Pool. Already passed on Snapshot.
Voting ends: April 22nd
NounsDAO
Nouns Autobidder Trial (by Federation)
Summary: Deploy a Federation AutoBidder to purchase Nouns at auction for use in future proposals. Uses 31 ETH from already-ratified Proposal 229 to do it.
Voting ends: April 22nd
Summary: Self-explanatory. 118.69 (lol) ETH to make, market, and sell some Nounish keyboards. They’re pretty cute, too.
Voting ends: April 20th
Lil Nouns
The Lil Nouns Show - Third Term ⌐◨-◨
Summary: Just over 17 ETH to fund the Lil Nouns Show, a weekly Twitter Spaces with 4 co-hosts hosted on The Noun Square, for 3 months. Since it launched 6 months ago, the show has reached 3337 listeners over 11 Spaces.
Voting ends: April 20th
Extend Nouns AutoBidder (71 ETH)
Summary: Extends AutoBidder by increasing its balance to 75 ETH to acquire 3 additional Nouns. It’s been actively bidding on Nouns for about two weeks now, most recently acquiring Noun 677 for the DAO.
Voting ends: April 20th
📝 10 Things To Read or Listen To
Article: “Introducing Web3 Work” by Other Internet
Article: “2023 State of Crypto Report” by a16z (Q&A Twitter Spaces)
Article: “Seeing like a protocol” by Barnabe Monnot
Thread: “Game Theory of Airdrops and Decentralization” by thiccythot
Thread: “How photography changed art: (will AI do the same to writing?)” by The Cultural Tutor
Thread: “Twitter updated their algorithm again.” by legen.eth
Thread: “Just because a protocol is on-chain *does not mean* it is decentralized” by Chase Chapman
Podcast (video): “Proof of concept for decentralized voting” by Dennison Bertram
Podcast: “Mapping Digital Tribes w/ Nadia Asparouhova” from GreenPill
Podcast: “chase @blockchain at USC || DT interview #37” from DAO talk
💫 DAO Talk: i think you should DAO || DT weekly #37
🤭 Meme of the Week
Exciting stuff from Tally: DAO Talk season 2 is here! Frisson and Tommy kick off the season with the latest on Arbitrum DAO, Other Internet’s attempt to tackle social security for DAO workers, and a new bounty for decentralized governance with AI integration.
All that sound a bit too advanced? If you’re still learning the ropes of DAO gov, check out Layer3’s new Introduction to DAOs quest (and earn rewards doing it)!
p.s.- In the last week, I’ve joined my favourite band The 1975 on every single concert on their Australian tour. Honestly, it feels like I’ve been on tour myself, I’m so tired. Anyway, the best concerts were in Melbourne. Camping out at the same arena for days on end actually turned out to be worth it because look how close I got!! I swear we made eye contact at least four times. DM me if you want any videos ;)
